New Product Research

Click here to download the document: Fair Trade Garments Feasibility Study

August 11, 2006

Dear Friends and Colleagues,

TransFair USA recently completed and analyzed the findings of a six-month feasibility study for the creation of Fair Trade garment standards. We would like to thank the many NGOs, unions, manufacturers, and producers who participated in this work; we relied heavily on their experience and commitment as we researched what was a very new area for TransFair.

As many of you know, garments made with Fair Trade Certified cotton have been available in Europe for some time. At TransFair USA we are very interested in addressing the social and economic plights of workers in the garment industry as well as cotton farmers, but we realize that the supply chains are very complex and that the problems therein are extremely nuanced. We therefore decided that when contemplating the creation of a certification system for garments, it was important to first consult the many NGOs, unions, companies, student, and grassroots campaigning organizations that support improved conditions in the industry to better understand these groups’ important views and concerns.

In conducting this study, we wished to determine whether Fair Trade could be relevant to the garments industry. For years we have received many requests from manufacturers and producers to apply the Fair Trade certification model to this market. After all, certifying and labeling as Fair Trade garments that were produced according to core ILO criteria and the fundamental Fair Trade tenets would surely empower consumers, workers, and industry. However, we knew very little about garments, and needed to learn from established organizations that were far more expert than we in this field.

I am pleased with the quality of the work, but there is no clear indication that TransFair USA should enter this market in the near term. Rather, we need to consider the possibility of engaging in one or more experimental projects to determine whether Fair Trade can realistically meet the high expectations stakeholders have established as the conditions for their support. In short, there is interest in the potential of Fair Trade to provide solutions (transparency, additional revenue to workers and farmers, and consumer awareness) to the problems in the world of garment manufacturing. This interest is somewhat conditional, however, upon the existence of rigorous and affordable standards and enforcement.

We have given our research to our colleagues at Fairtrade Labelling Organizations International and to our European counterparts who certify cotton. They are conducting similar research for European markets. In the coming weeks, we will explore options for collaborative, experimental engagements from which we can learn, for we have reached the limits of theoretical research. As we seek to augment our understanding of the issues in this sector and how we might be able to help address them, we will continue to monitor and support progressive initiatives led by many of your organizations. We thank you for your continued involvement in our efforts, and we hope that we can reciprocate as we continue to collaborate with the leaders in this industry and movement. 

Sincerely,
Christopher Himes
Vice President, Certification & Trade Development